In Ontario, the government increased the minimum wage from $11.6 to $14 per hour, which gave rise to controversial discussions among the population . Meanwhile, similar policies are also issued by many provinces and states in Canada and the United States. According to the analysis of the results of the increase in the minimum wage and the comparison between the provinces and states of Canada and the United States, the increase in the minimum wage seems to bring benefits to workers, however, these actions also lead to negative effects and serious consequences for low-skilled workers, the country's economy, small business owners and employment developments. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”?Get an original essayIn the beginning, the initial intention of the government is to help low-income workers improve their qualities of life, especially their standard of living, and finally to increase the country's economy. Meanwhile, the majority of low-income workers are young people who work particularly part-time and are expected to keep them above the poverty line through this policy of increasing the minimum wage. Additionally, employees may be inspired by higher salaries that encourage them to try harder and be more loyal to their company. Furthermore, increasing the minimum wage can promote economic growth because people's spending would be increased by the increase in salary, which could promote consumption to achieve economic growth (Maverick, 2016). Despite their positive intention in favor of the low-income group, the negative effects of increasing the minimum wage are evident. There is a need to define poverty and low-income people earning minimum wage. However, the survey carried out by Statistics Canada reveals that only 9.2% of minimum wage earners lived in a low-income family in Ontario in 2015. This means that more than 90% of minimum wage earners enjoy quality standard of living which is not targeted by the increasing salary policy. In addition, adolescents and young people aged 15 to 24 represent a significant share of the minimum wage. And they pretty much live with their parents, which means they're not the only income earners in their family either. As a result, the entire group of minimum wage earners is not the target of this policy, which grants less aid to low-income workers. In this way, they propose a new policy, called work-based subsidy, providing the poor with targeted strategies to solve poverty. For low-income people, it is better for the government to give them money directly (Lammam & Maclntyre, 2018). In addition, increasing the social minimum would create jobs, as recent data proves, the unemployment rate fell to 5.4%, reaching 5.4%. the lowest point in these years in Ontario. In this way, the Ontario government is creating a huge amount of jobs to compensate for the shortage of jobs in wholesale and retail trade, where most minimum wage earners work. Indeed, the increase in the minimum wage has so far helped to resolve the problems of partial job loss (Tencer, 2018). For small businesses, raising the minimum wage means that owners must take their own responsibility and think about the ongoing, long-term operation of the business by reducing employee wage costs. According to some, this harms owners of smallbusinesses and increases the rate of job loss for young and inexperienced workers. Owners must increase the cost of products to consumers to compensate for rising worker wages, and they might also reduce the number of workers to control labor costs. Thus, they give priority to practical workers who have rich experience. And hire young and inexperienced workers. Meanwhile, the overall employment rate will easily decrease in order to save the budget. Additionally, they would reduce staff working hours to lower their salaries, leading to lower productivity. Besides reducing employment costs, decreasing training time in nonprofit organizations and high employee well-being are also solutions considered by many small business owners. However, we cannot ignore that it is the employees who suffer the most commercial losses by increasing the minimum wage. This means that the improvement in employee salaries is largely offset by the reduction in bonuses paid by companies. Moreover, the increase in minimum wage also affects the economy of Canada and America. In a way, increasing the minimum wage causes inflationary pressure closely linked to wage growth. Although a high minimum wage can contribute to the economy by increasing workers' consumption, the increase in the unemployment rate cannot be neglected. But it is not easy to directly increase inflation by simply raising the minimum wage, and what needs to be solved is the pressure on inflation. In theory, raising the minimum wage could lead to higher prices for products and services for business owners. Additionally, some small businesses are at risk of going out of business due to potential staffing costs. In fact, wages are not the only factor that costs consumers. In practice, potential personnel costs can be offset by improved productivity and reduced headcount. This may not have a negative impact on the company's revenue, even if they make more money. However, the unemployment rate is apparently changing. For example, the minimum wage in California was increased from $6.75 in 2006 to $10.50 in 2017 and is expected to reach $15 in 2022. Based on the recent impacts of the minimum wage increase, experts are interested the effects on the catering industries. From 2007 to 2008, the minimum wage increased by $0.5 and restaurant industry revenues increased by 10%, but the employment rate decreased by 12%. Revenues in the restaurant industries increased by another 20% and the employment rate decreased by another 10% (Ingraham, 2018). Compared to Canada, Tim Hortons bosses have reduced breaks and social assistance for workers earning minimum wage. It is worth mentioning that these workers will have to pay 50% or 75% of the cost of benefits if they have worked between 6 months and 5 years or more than 5 years. This caused discontent among employees. (Saltzman, 2018). There is an example that analyzes the effects for Alberta of increasing the minimum wage. In 2015, Alberta became the first province to increase the minimum wage to $15 in Canada. It was also the first province or state to achieve this goal in North America. It stands out from other states in terms of economic and national conditions, such as California or New York. Alberta may therefore be a special case for discussing the effects and changes related to the minimum wage increase. He isIt is important to note that there is a very competitive job market in Alberta, particularly in the energy and electricity sector. In a competitive labor market, raising the minimum wage could theoretically lead to a loss of jobs. Statistics indicate that approximately 25,000 jobs were lost when the policy was in effect, and a similar number of workers who accepted the minimum wage were pressured to lose their jobs in Alberta. Meanwhile, Alberta has abundant resources that could be affected directly or indirectly by energy prices, leading to a boom and bust cycle in wages and employment. The study pointed out that the increase in wages can occur after a labor transfer requiring a higher energy price, which increases employment opportunities and also reduces the potential unemployment rate. This should be more beneficial for Alberta's economic development, otherwise it could worsen inequality and poverty. In general, Alberta must find other strategies during the minimum wage hike to adapt to economic conditions. In other words, the priority of a large increase in the minimum wage is not yet entirely appropriate for Alberta and is already creating a slight job loss in the short term. Thus, the current and future conditions of economic equilibrium must be considered first. (Marchand, 2017). Likewise, raising the minimum wage is hotly debated and encouraged by many people in the United States. In 1967, Martin Luther King organized the Poor People's Campaign to urge the government to solve the problems of low-income working poverty. In 2018, the US government decided to increase the minimum wage from $0.5 to $2 per hour in some states and cities in 2019. Although many economists disagree with the minimum wage increase and insist on their perspectives on the growing impacts on the minimum wage, this helps low-income workers improve their lives in practice. In the United States, the minimum wage can't even keep pace with inflation. According to data from the Economics Policy Institute, shifting 1968 dollars to 2017, the minimum wage for a full-time worker is $20,600 per year. In fact, a minimum wage worker only earns $15,080 per year in 2017. Since the policy was released, there have been recent changes. Jeff Bezos, the founder of Amazon, promises to increase the minimum wage to $15 for his workers in the United States. In other words, it is a sign that the policy of increasing the minimum wage is starting to change (Rushe, 2018). However, some workers believe Amazon will eliminate their bonuses and stock awards after raising the minimum wage. Although Amazon's actions are drawing both approval and disapproval, many U.S. retailers are also stressed and starting to change their minimum wages, such as Target, McDonalds and Costco. The government continues to examine the following influences in increasing the minimum wage and can make it adjust to national economic conditions. Keep in mind: this is just a sample. Get a personalized article from our expert writers now. Get a Custom Essay In summary, the minimum wage increase brings benefits and negative consequences to Canada and the United States. This shows the government's determination to help low-income workers improve their quality of life, but the adverse consequences on economic changes and unemployment cannot be overlooked. This could be a question,_23501349/